Hey Redpill Readers,
In today's edition, we'll cover Mark Zuckerberg and his zuck bucks. What do we mean by that? We’re talking about Facebook's own crypto project Libra, of course.
You’ll also hear about the latest rise in stocks and bitcoin. Plus, we'll cover one other big part of the 'new norm' - remote work.
So, let's get to it...
FACEBOOK-BACKED LIBRA IS OH-SO-CLOSE TO LAUNCHING
The founder of Facebook, Mark Zuckerberg, has entered the digital payment space. And his team is working their magic through the Libra Association, a FB-founded parent organization with 27 members.
What else do you need to know?
Here's what you need to know: In an attempt to appease Swiss authorities (and financial regulators around the world), the association has changed its strategy away from creating a global stablecoin to something different.
Instead, they'll launch multiple stablecoins… with each tied to a different fiat currency (such as the U.S. dollar, yen, peso, and so on).
The zuck buck's bull case: Digital payment functionalities could work smoothly across Facebookland. Heck, it could even be integrated into messaging apps, which would be even more bullish. And there’s one more thing...
Let's not forget, Shopify has already signed on as a partner.
What are stablecoins? In case you don't know, stablecoins are cryptocurrencies that don’t fluctuate in value against a specific fiat currency.
For instance, one unit of a USD-backed stablecoin is always worth one dollar. Libra mentioned USD, EUR, or GBP as base currencies for its different stablecoins.
Launch date for the zuck buck? Just right around the corner, actually. Facebook's libra could launch in January 2021.
Bottom line: On top of a standalone app that will let you send AND receive Libra tokens, you’ll also be able to manage your account from Facebook Messenger and WhatsApp. Sure sounds like the ‘blue pill’ of cryptos, but who knows!
Facebook's goal: To help people that wish to use it for remittance purposes and peer-to-peer payments. Got some family struggling (financially) back home in Venezuela? Don’t worry, “send them some libra tokens.”
That’s what they want.
But governments around the world aren’t having it.
In fact, they’re working on something entirely different...
You see, what governments are looking to launch is their very own central bank digital currency (CBDC). Take a look here:
China is expanding pilots of the digital yuan
Cambodia has launched their own CBDCs
And the Bahamas has done the same with something called the ‘Sand Dollar’ which we gotta admit, is a pretty cool name
And it doesn't stop there…
Many other countries are looking to do the same, including the U.S.
The common denominator here: Well, whether it's the Libra or the Bahama's Sand Dollar, a common thing they both aim to do is expand access to financial services (particularly to those that need it the most). Plus, both can expedite payments.
If you have a smartphone, you can send money. Simple as that.
STOCKS, BITCOIN, AND CRYPTOS MOSTLY UP IN NOVEMBER
First, let's look at stocks: Recently, they went up. In fact, global equities had their best month since 1988. Why? Because of a few things...
1) news that a coronavirus vaccine would get approved real soon
2) society not collapsing following the presidential election and
3) hopes for stimulus (and maybe the Treasury secretary pick, too)
Growth with small-cap stocks (Wall Street talk for small companies that are publicly traded), had their best month ever — up about 19%
We just saw Dow 30,000 in the stock market, a big milestone. A milestone nearly 125 years in the making
But we're not surprised... Tech stocks and a few small-caps were expected to lead the economic recovery - like Tesla, Salesforce, Slack, Zoom, etc
Cryptocurrency: Bitcoin, the world's largest crypto, hit an all-time high recently. The reason? Network effects.
And commitments from players like PayPal, Square, and MicroStrategy.
Non-cryptocurrency: The U.S. dollar had its worst month since July, which is a sign investors stayed away from fiat money. Time's are changing...
And the sheep are starting to wake up.
Commodities: Listen, there’s this one shiny metal we all love (and have found value in for thousands of years). We're talking about gold. A big safe haven for investors. So how did gold perform in November, you ask? Well, it had its worst month since 2016.
More companies want a piece of the BTC pie. It’s no longer considered a ‘scam’ or a ‘speculative gamble’ or a thing desired by ‘conspiracy theorists’ aka Satoshi fan boys.
In fact, it’s completely misunderstood by 99% of people…
And that includes the media… and these so-called ‘investigative journalists’ that so many people trust (and worship). Think they’re free thinkers? Not so much.
When the media tells you WHAT to think and HOW to think…
You’re in trouble.
The people that eat this stuff up are the same people that have zero understanding of economics (i.e. my eldest sister, your family members, co-workers, friends, etc).
Ironically, these people are the loudest ones on Facebookland (often arguing and fighting with people on small topics while completely missing the big picture).
Smoke and mirrors, folks.
But that’s what separates us Redpill readers from the rest.
We know what’s going on... And we know that Bitcoin is a legit asset with the brightest minds in the world working on it, developing it, and investing in it.
The problems we’re solving...
And the intellectual capital in this space is next level.
But the truth is this...
Maturity matters: Which is why the Bitcoin price just hit a new all-time high. Expect higher prices as the crypto market matures more and more. For now, we enjoy the journey to the new high above $19,892. Meanwhile, the rest get left behind.
Crypto data also suggests institutional demand is here: And it's one reason behind the recent rally. On-chain data points show that the demand for Bitcoin from institutions has been increasing super fast.
In November, Grayscale recorded all-time high net inflows... And then, there's the CME Bitcoin futures market. They saw its ‘open interest’ climb to $1 billion. In other words, Bitcoin is not going anywhere (and it’s definitely not slowing down).
As the billionaire, Stanley Druckenmiller explained, Bitcoin is likely here to stay... "It’s been around for 13 years and with each passing day it picks up more of its stabilization as a brand."
Bottom line: based off of our firm's research, more institutions invested in cryptocurrencies during the third quarter of 2020 than ever before.
What else is up more than ever before?
And whether you like it or not, we're never going back to normal.
PEOPLE ARE NOT ONLY INVESTING FROM HOME, BUT ALSO WORKING FROM HOME
Vaccines are here. Which means, we hope you enjoyed spending all that time with your wife and kids. Too bad that's over with.
Gas up the car. And get ready for your morning commute! It’s time to head back into the office, folks. Actually... not so fast!
You see, right now, there's a debate among three camps:
Return to your cubicle (office time): The folks in this group have an old way of thinking. And an even older way of conducting business. But regardless, this is an option that’s available once the dust settles a bit more...
Stay working from home (remote time): Tech companies have been doing this for years. I've been remote for the past 10 years so this hasn't been a "big change" for me. Nor some of the folks at our firm. But if they work well at home or work well sitting on a beach, does it matter? Also, if you want to keep costs down, while getting sales online, this may be your best option...
Hybrid (hammer time): Lastly, this camp is open-minded and sees a wide range of solutions. Whether you're working in your pajamas from home, from the office, or from the beach - a hybrid option is on the table. And again, does it really matter where someone is working from if they're getting their work done, growing your business, and producing on time? We say no.
Do your thang!
And here's the most interesting part...
If you think about it, it’s not really up to the companies to choose. Employees will ultimately make that decision.
Remote work is the future: For those that were able to figure it out, it was available 10 years ago. But it’s here now. And it’s available to all of us.
One more thing, the ability to work remotely is not even enough.
Let me explain...
We must make the shift: A shift towards a decentralized system architecture. With so much chaos and unpredictability, both decentralization in the workplace and system architectures have taken center stage. And rightfully so.
Don't know about you… but we really like our day-to-day 'work' like we like our day-to-day 'money' - decentralized.
While each company faces its own set of challenges, decentralized organizations are better equipped (to take on today’s crazy business environment).
Crypto companies already doing it? Look no further than Binance.
They’ve employed a remote workforce for most of their existence. They have roughly 1200+ team members in 50+ countries and regions.
Plus… tech giants like Apple, Microsoft, Twitter and Facebook have all instituted mid-to-long-term remote work policies, too.
MORE REDPILL CRYPTO NEWS
Great move from Bitstamp... one of the world’s oldest and largest cryptocurrency exchanges has just introduced an insurance policy. It covers the theft and other losses of user funds held on its platform.
Bloomberg is bullish on BTC. How bullish? Well, Bloomberg’s quarterly note on crypto assets posits BTC at $100,000 by 2025.
In unrelated crypto news... this company is getting rich by turning jackfruit into pork. There’s been an increase in interest for vegetarian and vegan food in Thailand and NR Instant Produce is cashing in on the trend.
In Orwellian news... a new AI camera can detect if shoppers are wearing masks or not. If a shopper goes without a mask, the camera displays a message asking the customer to please wear a covering while in the store.
Dapper Labs, the company behind CryptoKitties, has now raised a total of $52.5MM from big traditional investors such as USV, Samsung Ventures, a16z, Venrock, and Warner Music Group.
DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.
Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.